Logistics in China is seizing up right now along with the cost of raw materials - textiles, chemicals, plastics, etc. Containers are piling up at ports - especially to the ME that China was using to dump part of its excess capacity since they have lost part of the American market. In addition, they have been operating zombie companies supported by gov subsidies that otherwise would be operating at a loss. Those that manage to make profit, its very small just to keep market share. So yes, if China has to compete on a level playing field with everyone else, they lose that competitive edge they have been exploiting for years. If we could manage to shut down the bulk of their offshore trans-shipments designed to bypass tariffs, it will all be over for them but the crying.
I was listening to x22 the other day and heard him say China was getting a special deal of only $8 per barrel from Iran while we are paying over 10x that here in the US.
Are we still not producing enough to self supply here in the US? Shouldn't gas be basically nothing since we produce it all here?
The problem in the US is that yes, we do pump plenty of oil. But we don't refine most of that light crude ourselves. Our refineries are set up for heavy crude, like what comes from Venezuela. So we are basically selling our oil on the open market and importing oil to refine. That is why we need new refineries!
Not every single route. Where’s the route to Canada? They left it out. What you are witnessing is the decentralization of oil. All countries will be getting oil more locally. New local routes on deck.
Imagine when china pays what we all pay how expensive their shit will become and non competitive.
Very much so!
Logistics in China is seizing up right now along with the cost of raw materials - textiles, chemicals, plastics, etc. Containers are piling up at ports - especially to the ME that China was using to dump part of its excess capacity since they have lost part of the American market. In addition, they have been operating zombie companies supported by gov subsidies that otherwise would be operating at a loss. Those that manage to make profit, its very small just to keep market share. So yes, if China has to compete on a level playing field with everyone else, they lose that competitive edge they have been exploiting for years. If we could manage to shut down the bulk of their offshore trans-shipments designed to bypass tariffs, it will all be over for them but the crying.
Financial Times @FT · 18h UK to receive last tanker of jet fuel from Middle East this week https://ft.trib.al/ifEY7KT
I was listening to x22 the other day and heard him say China was getting a special deal of only $8 per barrel from Iran while we are paying over 10x that here in the US.
Are we still not producing enough to self supply here in the US? Shouldn't gas be basically nothing since we produce it all here?
The problem in the US is that yes, we do pump plenty of oil. But we don't refine most of that light crude ourselves. Our refineries are set up for heavy crude, like what comes from Venezuela. So we are basically selling our oil on the open market and importing oil to refine. That is why we need new refineries!
Not every single route. Where’s the route to Canada? They left it out. What you are witnessing is the decentralization of oil. All countries will be getting oil more locally. New local routes on deck.